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Thursday, February 22, 2024

Importance of Zero-depreciation Cover in Comprehensive Bike Insurance

When buying a comprehensive bike insurance policy, there are various add-on covers that you can opt for. However, it is always advised that you choose only the most useful add-ons since these come with an additional premium cost. 

Now, if you are wondering whether a zero-depreciation cover would be an ideal choice to go for or not. In this article, we will explain how a zero-depreciation cover adds value to your comprehensive bike insurance plan.

Zero-depreciation add-on covers the cost of depreciation on your bike in case you file a claim for the damages. In claim settlements, the insurance companies consider the depreciation on your bike. Depreciation is a reduction in the value of your bike due to wear and tear with time. 

Since the insurers consider depreciation, this may reduce your claim amount. But with a zero-depreciation add-on cover, you can claim the full amount (except deductibles) without factoring in the depreciation on bike parts. 

Note: You can only purchase this add-on cover if you have purchased a comprehensive insurance policy. 

Comprehensive Bike Insurance Policy

In India, it is compulsory that you have a third-party bike insurance plan if you own a two-wheeler or four-wheeler. Third-party bike insurance is by law, however, buying a comprehensive plan, would be a wise choice. Why so? Because it covers you against your own damage as well as third-party liability. 

How is Zero-depreciation Add-on Cover a Good-to-Go Option?

Below we have mentioned the benefits of buying a zero-depreciation add-on cover. You can compare the coverage provided by your plan, with and without the zero-depreciation add-on. Have a look at the following table: 


Comprehensive Insurance 

Comprehensive Insurance (with zero-depreciation cover)
Insurance plan costMore than the basic third-party bike insurance policyHigher than a Comprehensive Bike Insurance plan

Covers third-party liabilities, loss due to theft, fire damage, total loss, natural and man-made calamities, accidents, etc.No depreciation on bike parts in case of damage from accidents or other situations as per the coverage
Claim settlement amountLowerHigher than the standard comprehensive plan


As long as the insurance plan is active 
Available for bikes aged below 5 years. Coverage for bikes aged more than 5 years is mutually decided between the bike owner and the insurer.
Type of bikeAllMostly, new bikes are covered

Depreciation on bike parts
Not covered and must be borne by the bike ownerCovered and will be borne by the insurer

When should you opt for a zero-depreciation add-on cover?

You are now aware that buying a zero-depreciation add-on cover would be an ideal choice to make. However, we would suggest you make a final decision depending on its use and situation. So, in what circumstances should you buy the zero-depreciation add-on cover? Let us answer that:

  • You own a brand new bike.
  • You have less experience in bike riding.
  • The cost of the bike is more, for example, you own a high-end model, and the parts are expensive.
  • You often park the bike on the side of a road with higher chances of accidents.
  • You want to reduce out-of-pocket expenses during the claim settlement.

In short,

We hope you now have a clarity on the importance of the zero-depreciation cover. If you want to know more or wish to explore more insurance plans and add-on covers, you can download our Bajaj Finserv App!

Anywhere, Anytime insurance with the Bajaj Finserv App!

The Bajaj Finserv App is a high utility app that takes care of all your financial needs including insurance. On the app, you can explore bike insurance plans from our trusted partners. Here you can view product features, compare prices, and purchase a plan that is best suited to your needs. All this in a matter of minutes on our 100% digital platform and from the comfort of your home. It truly is becoming the new way to buy insurance.

Uneeb Khan
Uneeb Khan
Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World. gacorpedia zeus168 olympus globet88 LANGKAHCURANG2024 SLOTGACOR2024 agen89 agen89 bantengjp WDKAN138 WDKAN138 GASKAN138 1win patriot globet88 globet88 maxwin77 macantogel bimagacor mamen4d mamen123

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